As Retailers Shift Strategies, Will the Sector's ETFs and Consumers Bite?

As retailers are understanding the need to shift strategies to adapt to new consumer trends, the retail sector and related ETFs may be on the verge of some big changes.

High-end stores will begin to offer more economic and less-pricey merchandise, and many chain stores will carry less inventory and fewer brands, reports Stephanie Rosenbloom for The New York Times. Some chains will put self-service computers in stores to allow customers to browse collections or buy out-of-stock items. Retailers will also offer more exclusive items and provide more attentive customer service.

A new business model known as “My Macy’s” will require the retailer’s merchandisers and other planners to go into stores to learn what shoppers are requesting, buying or complaining about so they can stock inventory accordingly.

But changes in the industry do come with some drawbacks. Consumers may find items more easily, but their choices may be limited. Stores may also run out of stock more quickly than in the past since retailers will order less to avoid left overstocked inventories. Another trend that could come into effect would be a shorter seasonal transition for apparels.

Analysts and economists predict that consumer spending will return to 2007 levels in another 10 years.

• Claymore/Robb Report Global Luxury (ROB): up 7.5% year-to-date

• SPDR S&P Retail (XRT): up 29.2% year-to-date

Max Chen contributed to this article.